Iron ore crisis to slow steel capacity expansion after 2020:

The country is likely to face a major iron ore crisis due to the lapse of key operating mines by March 31, 2020. The deficit in domestic iron ore supplies after March 2020 is seen at around 80 million tonne. This, in turn, is bound to put brakes on building India’s steel-making capacity as it targets an ambitious 300 million tonne (mt) output by 2030.

Supplies in iron ore would be more pronounced in Odisha, the largest producing state where 17 mines are set to run out of operations. The combined annual capacity of these mines is estimated at 66 mt. The shortfall from Odisha would especially hurt the domestic steel companies as the state’s iron ore is predominantly used in within the country as opposed to the export-oriented ore in Goa and Karnataka.